Currency notes and coins cannot be refused by any citizen of the country for settlement of any kind of transaction due to which they are called __ __

Identify the quantitative tools used by RBI to control money supply.

(A) Moral Suasion

(B) Bank Rate

(C) Cash Reserve Ratio

(D) Open Market Operations

(E) Margin requirement

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The RBI can influence money supply by changing the rate at which it gives long term loans to the commercial banks. This rate is called?

Arrange the following measures of money supply in decreasing order of their liquidity.

(A) M4

(B) M2

(C) M1

(D) M3

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Instead of outright sale of securities, the Central Bank may sell securities through an agreement which has a specification about the date and price at which it will be repurchased. This type of agreement is called . The rate at which money is withdrawn in this manner is called.

Which of the following is not a monetary measure adopted by Reserve Bank of India?

The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India?

(A) India got its central bank in 1935.

(B) It is the custodian of the foreign exchange reserves of the economy.

(C) It controls the money supply of the country through various methods, like bank rate, open market operations etc.

(D) It also acts as a bank for the banking system.

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